Forest Industries & Statistics

Transcription

1 Production of logs A total of 3.48 million m3 of logs from natural forests were produced in 2010, while another 0.67 million m3 were produced from plantation forests making the total log production from natural forests and plantation forests at 4.15 million m3. While production from plantation forests steadily increased, production from the natural forests continued to decline. Class II Forest Reserves (Commercial Forest Reserves) contributed about % of the total log production from the natural forests while production from State lands became less significant with a contribution of only 1.7% of the total production and alienated lands at 10.20%. The bulk of natural forest production came from Yayasan Sabah s concession areas. Production from plantation forests have been hovering around 600,000 m3 per annum over the last few years and last year s production was the highest ever recorded thus far with a recorded production at 672, m3. Records of rubber wood production from Sabah Rubber Fund Board clearing areas for new replanting activities showed a marked increase for the first time with encouraging submission of rubber wood utilization reports from mills utilizing rubber wood. This was not available before in view of the status of rubber plantation areas which are mostly private lands. It is noted that overall, the production of plantation logs from Forest Reserves continued to make an impact and that the biggest volume of plantation logs is now from Forest Reserves at 36.93%, followed by production from alienated lands at 33.57% and state lands at 29.50% respectively. SFI Sdn Bhd remained as the largest producer of plantation logs contributing 35.39% of the total supply of plantation logs, followed by Sabah Softwoods Bhd at %, SAFODA at 29.50% and others at 10.36%. Rubber trees at TSH Resources Bhd. concession area, an important component of agro-forestry and industrial tree plantation. Production data of logs from natural forests and industrial tree plantation areas are shown in Tables 15.1, 15.2 and 15.3 respectively. Table 15.1: Log Production From Natural Forests By Land Status 2010 Type of Land Forest Reserves State Lands Other/Alienated Lands Total Volume (m3) % of Total Production 3,069, , , ,483, Table 15.2: Log Production By Type of Licence 2010 Type of Licence Volume (m3) % of Total Production 2,897, Form I Licences 240, Form IIB Licences 345, ,483, SFMLA/Concession Licences Total Mahagony trees at Gum Gum Research plot. 103

2 Sabah Forestry Department Table: 15.3: Log Production From Plantation Forests 2010 Company Forest Reserve (m3) Stateland (m3) Sabah Softwoods Berhad Alienated Land (m3) 166, Sabah Forest Industries Sdn. Bhd. Total (m3) % 166, , , KM Hybrid Plantation Sdn. Bhd. 2, , Benta Wawasan Sdn. Bhd. 7, , , , , , , , Lembaga Industri Getah Sabah (LIGS) Smallholders SAFODA:a. Triple Delight Sdn. Bhd. b. H & K Enterprise c. Sasaran Tinggi Enterprise d. Hijauan Bengkoka Plantations Sdn. Bhd. e. Excella Wood Sdn. Bhd. Total 198, , , , , , , , Production of Timber Products and The Wood Based Industry With the exception of moulding, paper, treated timber, particle wood, and bamboo furniture, all production of timber products showed a marked decline, indicating the chain effects of the declining resources and hence the scaling down of mill operations. In spite of that, the total number of mill establishment and the records of inactive mills did not really changed. The plywood sector also remained as the dominant wood-based industry utilizing most of the logs in the domestic market. Importation of raw materials in the form of round logs, sawn timber and veneer to supplement raw materials requirement by the local wood-based industry also had not really shown any significant increase with records of imports or combined import volume of the three products (round logs, sawn timber and veneer) at only 90, m3 in The shortage of raw materials however has given a more positive effect to industry with increasing utilization of mill wastes such as veneer wastes, slabs, log cores and logging residues and hence recovery of raw materials. More mills were also observed to have utilized plantation timber as an important supplementary raw material for their mills, apart from coconut trunks and oil palm trunks. (Left) Patching damaged veneer at Sinora Sdn Bhd.; and (right) packed plywood ready for export to various destinations. (Left) Collected sawmill wastes for particleboard processing; and (right) weighing of sawmill wastes to determine the volume of wastes prior to leaving the mill compound. 104 Annual Report 2010

3 Vital wood-based industry statistics are shown in Tables 15.4 to respectively. Table 15.4 : Sabah: Production Of Timber Products (2010) Product % change in Production 2009/2010 Input (m 3 ) Output (m 3 ) Input (m 3 ) Output (m 3 ) Sawn Timber 1,556, , ,079, , (30.52) Veneer 163, , (20.10) Plywood 1,033, ,020, (1.22) 2,386, ,269, Blockboard 43, , (22.42) Laminated Board 19, , (38.87) Moulding 214, , , , Particle board 56, , , , Paper (output in m/t) 713, , , , Chips 214, , , , (18.59) Treated Timber 11, , , , Kiln Dried Timber 221, , , , (1.50) MDF Bamboo furniture 1, , , Briquette/Carbon Rod 4, , (77.92) Table 15.5: Sabah: Production Of Forest Products By Region (2010) Type of Product Sandakan Kota Kinabalu Keningau Tawau Kudat Total Input (m 3 ) Output (m 3 ) Input (m 3 ) Output (m 3 ) Input (m 3 ) Output (m 3 ) Input (m 3 ) Output (m 3 ) Input (m 3 ) Output (m 3 ) Input (m 3 ) Output (m 3 ) Sawn Timber 238, , , , , , , , , , ,079, , Veneer 69, , , Plywood 483, , , ,020, ,014, , , , ,269, Blockboard , , , , , Laminated Board 3, , , , Moulding 22, , , , , , , , , , , , Particle board 58, , , , Paper (output in M/T) , , , , Chips , , , , , , , , Treated Timber , , , , , , Kiln Dried Timber 24, , , , , , , , , , , , MDF Bamboo Furniture , , , , , , Briquette/Carbon Rod Table 15.6: Sabah: Total Set-Up Of Wood Processing Mills In Sabah In 2010 By Region Type of Product Sandakan Kota Kinabalu Keningau Tawau Kudat Total Licenced Active Licenced Active Licenced Active Licenced Active Licenced Active Licenced Active Sawmill V/P/PPY/BB/LB Moulding Particle board mill Paper Chips mill Wood Preservative Plant Kiln Dried Plant MDF mill Briquette mill Bamboo Furniture mill Note: V: Veneer; P: Plywood: PPY: Poly ply; BB: Block board; LB: Laminated Board. 105

4 Table 15.7: Sabah: Comparative Total number Of Active And Inactive Mills In 2009 And 2010 Type of Product Increase/(decrease) in the number of mill (2010/2009) Licenced Active Inactive Licenced Active Inactive Licenced Active Sawmill Veneer/Plywood/PolyPly/ Blockboard/Laminated Board Moulding Particle board mill Paper Chip mill Wood Preservation Plant Kiln Dry Plant MDF mill Briquette mill Bamboo furniture mill Table 15.8: Sabah: Installed Capacity of Mills Utilizing Logs (2010) Type of Mill Installed Input Capacity (M 3 ) Sawmill 3.0 million Veneer/Plywood Mill 3.2 million Pulp & Paper Mill 0.9 million Total 7.1 million Table 15.9: Sabah: Investment and Equity Structure In The Wood Based Industry (2010) Citizenship Table : Employment In The Wood-based Industry In Sabah (2010) Sabah 2010 Sabah 2009 Equity (RM) % Investment (RM) % Equity (RM) % Investment (RM) % Taiwanese 242,381, ,556, ,196, ,522, Japanese 15,385, ,826, ,385, ,853, Singaporean 28,049, ,213, ,049, ,187, Korean 19,999, ,226, ,999, ,077, Italian 6,900, ,168, ,800, ,500, Germany 760, ,012, ,360, ,008, Indonesian 1,250, ,458, ,250, ,458, Burmese 350, , , , Hong Kong 1,115, , , , Netherland 490, , , , Australia 6,900, ,168, Total Foreign Investment 323,581, ,122, ,611, ,014,778, Malaysian 2,542,559, ,103,258, ,497,163, ,801,189, Total Investment 2,866,140, ,018,380, ,839,774, ,815,968, Type of Mill Bumiputra Non-Bumiputra Malaysian Others Total Sawmill 2,194 1,033 3,227 4,820 8,047 Veneer/Plywood/Poly Ply/ 3,524 1,577 5,101 13,273 18,374 Blockboard/Laminated Board Moulding 2, ,006 2,578 5,584 Particle board mill Paper Chip mill Wood Preservation Plant Kiln Dry Plant ,136 3,023 4,159 MDF mill Briquette mill Bamboo mill Total 10,380 3,639 14,019 23,979 37, Annual Report 2010

5 Production of Non-Timber Forest Produce Charcoal and mangrove poles production in 2010 showed a significant increase in 2010 with charcoal production experiencing an increase of more than double to that of 2009 s production, while mangrove poles recorded an increase of 60% to that of the previous year. Tawau remained as the highest producer of charcoal followed by Kota Marudu. Tawau which recorded low charcoal production in 2009, bounced back to its normal production capacity at 500,000kg to 600,000 kg annually in 2010, while the significant increase of charcoal production in Kota Marudu has been attributed to the significant increase in the number of new kilns in that district. Production of other minor forest products recorded in 2010 remained insignificant as shown in Table 15:11. The sole Gaharu distillation plant licence in Sabah with Gaharu oil as the end product, only utilized 2.03 m 3 of Gaharu chips in The Gaharu chips were derived from alienated lands approved specifically for the distillation plant s use. The detailed statistics of non-timber forest products are shown in Tables to Table 15:11: Sabah: Production summary of Non Timber Forest Produce Product Production Remarks Charcoal (Kg) 946,800 Sandakan/Kota Marudu/Beaufort/Kudat/Tawau/Kota Kinabatangan Nibong ( Meter) 600 Semporna Bamboo ( Meter) 2,740 Tambunan Rattan (M/Ton) - Mangrove Poles ( Meter) 120,240 Sandakan/Pitas/Semporna/Beaufort/Kudat Gaharu (m 3 ) 2.03 Kota Belud (Input to distillation plant) Fire wood (M/Ton) 199 Tawau Table 15.12: Sabah: Production Of Charcoal ( ) District 2005 (kg) 2006 (kg) 2007 (kg) 2008 (kg) 2009 (kg) 2010 (kg) Sandakan ` 61,700 66,200 70,340 53,800 74,000 Kota Marudu 94,300 67,200 8,500 49, , ,360 Beaufort 14,000 39,000 39,000 23,000-6,000 Kota Kinabalu 9, Kudat 42, ,560 Tawau 452, , , , , ,190 Kota Kinabatangan 51,890 60,860 63,096 70,900 77,000 76,690 Total Sabah 730, , , , , ,800 Table 15.13: Sabah: Production Of Mangrove Poles For Piling ( ) Year Sandakan Kunak Lahad Datu Pitas Tawau Semporna Sipitang Beaufort Table 15.14: Sabah: Total Number Of Charcoal Factory Permits (2010) Kota Kinabalu Kudat Total Sabah ,500-11,960-21, , , ,750-13,780-11, , , ,500-40,227-15, , , ,250-24,440 3,600 11, , , ,750 22,439 28,600 7,800 19,334 19,402-1,080 3, , ,250 32,045 10,140 18,000 11,655 27,460-1,774 1, , ,750 12,439 26,400 18,000 13,408 57,083-3, , ,250-20,200 17,560 19,597 96, , , ,250-11,390 10,120 12,526 66, , , ,520-42, ,000 74, , ,680-37,754-18,056-7, ,240 District No of Permit Total Number of No of Permit Permit Kiln Active Inactive Active Inactive Total Permit Sandakan Kota Marudu Beaufort Kota-Kinabalu Tawau Kota Kinabatangan Kudat Number of Kiln Total Sabah

6 Agro Forestry (Oil Palm) Production Significant increase in the production of oil palm and collection of oil palm royalty from agro-forestry activities have been observed for the year Overall production increased by 346 % to that of 2009 leading to higher royalty collection and this is expected to increase further in the future as the yield from older trees increase and with expected additional production from Beluran Forestry District. Benta Wawasan Sdn. Bhd. having most of the area under agro-forestry (oil palm) contributed 73.7% of the overall production. Table and Chart 15.1 illustrate the agro-forestry production from 2007 and production and royalty contribution by individual companies for the year Table 15.15: Sabah: Production Of Oil Palm From Agro Forestry Activities ( ) Year Production (M/T) Royalty (RM) , , , , , , Chart 15.1: Sabah: Oil Palm Production and Royalty Collection By Company (2010) Export Of Forest Products Plywood remained as the top foreign exchange earner for the timber industry contributing 42.89% of the total export earnings of the forestry sector at RM 3.07 billion, followed by sawn timber at 23.12%, paper at 7.67% and round logs at 6.69%. With the exception of plywood, paper and particle board, all main forest products showed an increase in the volume of exports. Pricewise, plywood, moulding, veneer and finger-joint products performed better with more foreign exchange earning in spite of the smaller volume of exports as compared to the previous year. The round log market remained unchanged with China, still the biggest importer of Sabah s logs, followed by India and Japan. The market for plantation logs also remained unchanged with Vietnam as the main market, followed by Indonesia, India and China. The only significant change was the increase in the export of plantation logs to Indonesia from 5.8% of the total export in the previous year to 25% of the total export of plantation logs last year, making Indonesia as the second biggest buyer of Sabah s plantation logs last year. The plywood market generally remained unchanged with Japan, Pen. Malaysia, Korea and Taiwan as the main buyers. In the case of paper exports, although Pen. Malaysia remained as the single biggest market of Sabah s paper, it is noted that other markets namely the Middle East which were prominent in the previous year had become less significant, while Indonesia, Thailand and Vietnam showed their importance as emerging markets for paper last year. Sabah s sawn timber market also showed a marked change last year with the emergence of Thailand as Sabah s biggest sawn timber market, replacing Japan as the number one importer of Sabah s sawn timber. Similarly, South Africa and China also made it to the top five main destinations of sawn timber, apart from Taiwan and Pen. Malaysia, as compared to Japan, Pen. Malaysia, Korea, Taiwan and Mexico in Main trade statistics for 2010 are shown in Tables 15.16, and Charts 15.2 to Table 15.16: Sabah: Comparative Export Of Selected Timber Products For (2010) Product % change Volume Value RM (FOB) Volume Value RM (FOB) Volume Value RM (FOB) Round Logs (m 3 ) 408, ,138, , ,878, (10.76) Plantation Logs (m 3 ) 85, ,062, , ,661, (10.13) Sawn Timber (m 3 ) 468, ,144, , ,965, (1.50) Veneer (m 3 ) 133, ,898, , ,468, Plywood (m 3 ) 933, ,315,069, , ,283,528, (3.82) 2.46 Moulding (m 3 ) 35, ,827, , ,870, Paper (m/t) 83, ,241, , ,518, (27.69) (17.61) Block board (m 3 ) 45, ,455, , ,273, (1.16) Laminated Board (m 3 ) 22, ,559, , ,902, (11.57) Chips (m 3 ) 66, ,064, , ,774, (9.42) Particle Board (m 3 ) 44, ,480, , ,941, (1.68) (9.87) Finger Joint Products (m 3 ) 25, ,450, , ,846, Annual Report 2010

7 Table : Sabah: Comparative Export Of Selected Timber Products (2010) Product Volume RM FOB Unit Price (RM) Round Logs m 3 408, ,138, Plantation Logs m 3 85, ,062, Coconut Trunk m , Rough Sawn Timber m 3 351, ,132, , K/D Rough Sawn Timber m 3 43, ,292, , S4S Sawn Timber m 3 23, ,479, , E4E Sawn Timber m 3 1, ,891, , Rubber Wood Sawn Timber m 3 6, ,177, A/D Pressure Impregnated Timber m , , S2S Rough Sawn Timber m 3 3, ,149, , K/D S2S Sawn Timber m , , K/D S4S Sawn Timber m 3 3, ,567, , E2E Sawn Timber m , , Plantation Sawn Timber m 3 11, ,556, Sawn Coconut trunk m , Sticks m 3 22, ,842, , S4S Plantation Sawn Timber m , , S2S Plantation Sawn Timber m , , K/D Plantation Sawn Timber m , , Plain/Ordinary Plywood m 3 922, ,283,309, , High Value Added Plywood-Fancy m 3 10, ,760, , Rotary Veneer m 3 130, ,254, , Slice Veneer m 3 2, ,526, , Edge Bending Veneer m , , Block board m 3 45, ,455, , Laminated Bare Core Board m 3 22, ,559, , Finger Joint Products m 3 25, ,450, , Laminated Window/Door/Beam m 3 17, ,319, , Particle Board m 3 44, ,480, Mould Board m 3 2, ,178, , Laminated Veneer Lumber m 3 5, ,966, , Paper m/t 83, ,241, , Inland Chips m/t 66, ,064, Broom Stick m , Cinnamon Bark/Kulit Kayu Manis m/t , , Wood Waste m/t , Veneer Waste m/t 1, , Processed Lumber Core m 3 1, , Moulding (Profile) m 3 35, ,827, , Veneer Wrapped Moulding m , , Furniture m/t , , Furniture Components (Indoor) m 3 1, ,099, , Garden Furniture m/t 10, ,528, , Musical Components m ,529, , Parquet Flooring (Non-Assembled) m ,936, , Window Frames FR Paint Plates & Mirror m , , Doors m 3 1, ,242, , Aggregate 1/2" m/t 1, , Aggregate 2" m/t 1, , Aggregate 3/4 (Graded)/20MM D.A. m/t 114, ,380, Aggregate 3/8 Chipping m/t 18, , /2" Crusher Run m/t 37, , Stone Dust m/t 11, , Gaharu oil ml , Gaharu Block kg 56 11, Gaharu Chips kg 10 2, Total 3,066,007,

8 Chart 15.2: Export of Logs (m 3 ) By Major Destinations (2010). Chart 15.3: Export of Plantations Logs (m 3 ) By Major Destinations (2010). Chart 15.4: Export of Sawn Timber (m 3 ) By Major Destinations (2010). Chart 15.5: Export of Plywood (m 3 ) By Major Destinations (2010). Chart 15.6: Export of Paper (m/t) By Major Destinations (2010). 110 Annual Report 2010

9 Timber Royalty and Other Fees A slight revision to the royalty rates were made in 2010, whereby the automatic RIL royalty rate that applies to Yayasan Sabah and Benta Wawasan Sdn. Bhd. was abolished. With the new revision, Yayasan Sabah and Benta Wawasan Sdn. Bhd. will no longer enjoy the automatic qualification of RIL royalty rates and that all logs produced from RIL areas including Yayasan Sabah and Benta Wawasan Sdn. Bhd. would have to be verified on the ground for RIL compliance first before the RM10/m 3 RIL royalty rebate is given to RIL practitioners. The royalty rates of logs for export and for domestic processing for 2010 are shown in Table Table 15.18: Sabah: Timber Royalty (2010) 1. Export Royalty On Round Logs Including Treated Poles Royalty (RM/m 3 ) Class Species FR/NFM Helicopter Logging ITP/SL/AL A Belian Irrespective of size 270 B C D Merbau/ Merbau Lalat Red Seraya White Seraya Yellow Seraya Melapi Kapur Keruing Selangan Batu Agathis Kembang Kembang Semangkok Nyatoh Oba Suluk Pengiran Any other species not mentioned in class A, B and C (i) 60 cm (ii) cm (a) (iii) 30-44cm (a) (iv) 29cm and below (a) (i) 60 cm (ii) cm (a) (iii) 30-44cm (a) (iv) 29cm and below (a) (i) 60 cm (ii) cm (a) (iii) 30-44cm (a) (iv) 29cm and below (a) E Perupok 120 not applicable Irrespective of size 120 F Macaranga Irrespective of size 20 G Acacia (i) 60 cm (ii) cm (a) (iii) 30-44cm (a) (iv) 29cm and below (a) FR/NFM/ITP FR not applicable Irrespective of size FR: Forest Reserve; NFM: Natural Forest ManagementI; TP: Industrial Tree Plantation; AL: Alienated Lands; SL: State lands (a) From alienated lands, state lands and industrial timber plantation areas approved within Forest Reserve. 2. Local Processing Royalty Type Rate (RM/m 3 ) Logs RIL FR/NFM (b) Helicopter Logging Non-RIL FR/NFM ITP SL AL 60 cm cm (a) cm (a) cm & below Macaranga spp Logging Residues (b) ) Belian Perupok 80 NA Acacia 60 cm NA NA cm)- NA NA cm NA NA cm & below NA NA ) Converted Timber 160 Belian: 160 Others: ) Logs for SFI s pulp and paper mill FR: Forest Reserve; NFM: Natural Forest Management; ITP: Industrial Tree Plantation; AL: Alienated lands; SL: State lands; NA: Not applicable. (a) From alienated lands, state lands and industrial tree plantations areas approved within in Forest Reserves (b) Subject to inspection/field verification by Sabah Forestry Department. Rate does not apply to Belian and Merbau. (c) As input for pulp and paper mill use only. (d) Subject to field verification on RIL compliance. Rebates of RM10/m 3 from the normal RM80/m 3 will only be given after field verification

10 3. Royalty for Confiscated Log /Auctioned timber 4. Processed Timber Export Royalty i. Logs RM 80/m 3 irrespective of size, species and source. ii. Converted Timber RM 160/m 3 irrespective of size, species and source. 5. Inspection Fees And Certification Charges On Imported Timber Type Rate (RM/m 3 ) All Sawn Timber 10 All Plywood 5 All Veneer 10 All mouldings 5 Type Rate (RM/m 3 ) Logs 10 Converted Timber 10 Sawn Timber 10 Veneer 10 Others - 6. Premium Type Premium rate RM/m 3 a) FR/NFM 1. Yayasan Sabah & Benta Wawasan 2. Other licences after 01 Feb Other licences before 01 Feb SFMLA 60cm and above only RM (Macaranga: Exempted) RM (Macaranga: Exempted) According to licences conditions (Macaranga: Exempted) RM (Macaranga: Exempted) b) ITP 1. Yayasan Sabah & Benta Wawasan 2. SFMLA c) Stateland 45cm RM (Macaranga: Exempted) RM (Macaranga: Exempted) 45cm RM (Macaranga: Exempted) 44cm RM 0.00 (Macaranga: Exempted) RM 5.00 (Macaranga: Exempted) 44cm RM 5.00 (Macaranga: Exempted) d) FR/ITP (non YS/BW) 45cm RM (Macaranga: Exempted) 44cm RM 5.00 (Macaranga: Exempted) Agro-Forestry Training An extension of the Agro-forestry training with funding from the Federal Government under the Sabah Development Corridor s Human Resource and Economic Stimulus Package was conducted from November 2010, with emphasis on the monitoring aspects of agro-forestry production namely oil palm and rubber production, although courses on other agricultural activities with potentials to be introduced under the community forestry programs of the Sabah Forestry Department such as swiftlets propagation, fresh water farming, and planting of medicinal plants in home garden, were also included. The emphasis on the monitoring aspects of oil palm and latex production was aimed at exposing Sabah Forestry Department officials in the field in on the various aspects of oil palm and rubber plantation management such as good control measures and monitoring systems, effective and systematic reporting system which could lead to better detection of bad management practices which could help to capture the full potential of royalty collection from agro-forestry products. The course was conducted with the help of officials from Sawit Kinabalu Sdn. Bhd. and Sabah Rubber Fund Board (LIGS). (L R) Jeflus Sinajin, Head of the Sustainable Forest Management Division, officiating the Agro-Forestry Training Course on behalf of the Director of Forestry; Participants of the Agro-Forestry Training Course; and official from Sawit Kinabalu Sdn. Bhd. giving his presentation to the training course participants. 112 Annual Report 2010

11 Sabah Forestry Department MTIB s Director General s Visit to Sabah The new Director General of the Malaysian Timber Industry Board, Dr Jalaluddin Harun and MTIB senior officials, visited the Sabah Forestry Department Head Quarters on 05th March During the visit, the Director General highlighted the objective of their visit which amongst others to explore how MTIB can work together with the various agencies in the State to spur the growth in the timber industry and forest plantations establishment in Sabah, and the possibility of collaboration within the frame work of the National Timber Industry Plan (NATIP). The National Timber Industry Plan (NATIP) covering the period , outlines the course of actions for the Malaysian timber industry to maintain and enhance its competitive edge in the global marketplace. Amongst NATIP s target is for the timber industry in Malaysia to attain an annual growth of 6.4% to reach timber export value of RM53 billion by Seven strategic thrusts have been outlined in NATIP with specific outline of policy directions which are, i) Industry structure ii) Supply of raw materials iii) Innovation and technology iv) Marketing and promotion v) Human capital development vi) Funding and incentives and vii) Bumiputera participation. (L R) Discussion with Sabah Forestry Department and MTIB officials; and Presentation of souvenir by Datuk Sam Mannan to Dr. Jalaluddin Harun. STIA Central Committee Visit to Sabah Forestry Department Head Quarters and Sabah Forestry Department/STIA Dialogue The Sabah Timber Industries Association (STIA) Central Committee Members led by it s President Datuk James Hwong, visited Sabah Forestry Department Head Quarters on 30th June The main objective of the visit was to seek a briefing from the Sabah Forestry Department on the Department s long term program for the wood-based industry. In the briefing to the STIA Committee members, the Director of Forestry amongst other matters explained on the sustainable forest management (SFM) policy which has been intensified by the State Government, the declining raw material and the need for the industry to brace with the changing trends and to be linked to tree growers, to be efficient and to diversify mill production towards production of world class products. On 21st of October 2010, a dialogue between members of STIA Sandakan Branch and Sabah Forestry Department was conducted at the Sabah Forestry Department Head Quarters. The main issues discussed were on the implementation of Removal Passes for forest products and overtime application for supervision of mills and loading outside the normal working hours for the Sandakan Forestry District. Arising from the dialogue, the Sabah Forestry Department has streamlined the procedure for the implementation of Removal Passes and overtime applications for statewide implementation that is, one guideline for implementation for the whole of Sabah. (L R) Presentation of souvenir by Datuk Sam Mannan to Datuk James Hwang; and the meeting between STIA and Sabah Forestry Department in session. 113

12 Sabah Forestry Department Workshop on SME Competitive Rating for Enhancement (SCORE) for the Wood-Based Industry A workshop on Small and Medium Enterprises Rating for Enhancement (SCORE) for the Wood-based Industry was held at the Sabah Forestry Department, Auditorium Sandakan on December 2011 The Workshop was jointly organized by the Department of Industrial Development and Research as the lead agency, SME Corp, Sabah Forestry Department, Sabah Timber Industries Association (STIAS), Sabah Forestry Department and the Malaysian Timber Industry Board (MTIB). The workshop was attended by approximately 120 participants and was officiated by YB Datuk Raymond Tan, Minister of Industrial Development Sabah. Amongst the objectives of the workshop were: To identify programs and assistance to be extended to SMEs. To evaluate and track capabilities and performance in management, operation management, technology adoption, certification initiatives, financial capability and marketing capability. To facilitate the linkage of SMEs to large companies and identify suitable intervention to enhance the development of SMEs; and To develop baseline data on SMEs to rate the current state and to monitor their progress through periodic surveillance. Five papers related to the subject matter were presented during the workshop namely: Market Development Grant (MDG) by Mr. Syed Zahirulldin Syed Ali of (MATRADE). Product Innovation and Quality Enhancement for Timber Products by Mr. Kheiruddin Mohd Rani - of MTIB Kuala Lumpur. L.Y. Furniture Experience in Furniture Manufacturing by Mr. Yap Chun Wu of L.Y. Furniture Pen. Malaysia. Wood-Based Certification by Mr. Azizan Ariffin of SME Corp. and; SME Competitiveness Rating For Enhancement (SCORE) by Mohd Izham Abdullah of SME Corp. (L R) Datuk Sam Mannan presenting a momento to YB Datuk Raymond Tan; workshop participants listening attentively to the various presentations in the workshop; and a participant asking question to the panel of speakers. The Workshop secretariat comprising Sabah Forestry Department, SME Corp, MTIB, Department of Industrial Development and Research and STIA s staff. 114 Annual Report 2010